Senate bill to make cash incentives, rewards for Olympic medalists tax-free
Gold medallist Philippines’ Hidilyn Diaz stands on the podium for the victory ceremony of the women’s 55kg weightlifting competition during the Tokyo 2020 Olympic Games at the Tokyo International Forum in Tokyo on July 26, 2021. (Photo by Vincenzo PINTO / AFP)
MANILA, Philippines — Senator Pia Cayetano has filed a bill seeking to exempt from taxes the cash incentives, bonuses, rewards, and other forms of emoluments given to Olympic medalists and their coaches.
Cayetano filed Senate Bill No. 2341 which seeks to amend the National Athletes and Coaches Benefits and Incentives Act.
“While incentives received by the athletes are exempted from tax as provided for in Sec. 32 of the National Internal Revenue Code, those received from the private sector are still subject to the six percent (6%) donor’s tax,” the senator said in the measure’s explanatory note.
Under the bill’s proposed amendments, cash incentives, bonuses, rewards, and other forms of emoluments received by Olympic medalists and their coaches, whether from the government or from private sectors, “shall be exempt from any and all taxes, fees, and charges levied by any government agency, local or national, subject to the rules and regulations to be issued by the secretary of finance, as recommended by the commissioner of internal revenue.”
If enacted into law, the bill would have a retroactive effect, meaning the national athletes and coaches who won in the Tokyo Olympics will also be covered.
Cayetano’s bill comes after weightlifter Hidilyn Diaz and boxer Nesthy Petecio clinched the gold and silver medal, respectively, in the Tokyo Olympics.
For her historic gold medal win, Diaz is poised to receive cash incentives worth more than P35 million, including other perks.
Petecio is set to receive at least P17 million in cash incentives.
Meanwhile, boxers Eumir Marcial and Carlo Paalam are both assured at least a bronze medal in the Olympics.
